Limited Partner's Expenses

[Unregistered]

If a limited partner incurs expenses on behalf of the partnership and they are not reimbursed by the partnership, can the expenses be deducted on the Schedule A subject to the 2% AGI limitation?

[Matt Sova]

Upe

These are Unreimbursed Partner Expenses that can be deducted on Schedule E. Put them on a separate line with UPE after the partnership name.

[Unregistered]

I tried that but the stupid software won't let me make the entry, I suppose because the partner is limited.

I wish I could just force it through. Anyone have any experience with this on Drake?

[rosieea]

It should be noted that the partnership agreement must require that partners incurring expenses on behalf of the partnership do so at their own expense and will not be reimbursed.

[Unregistered]

deduct the expenses on the 1065,

and increase the partner's capital account by the amount of the expenses paid on behalf of the partnership.

Couldn't this be done?

JoshInNC